April 1, 2013
February construction spending is up, particularly with regard to residential building, private non-residential building and public investment, the Associated General Contractors of America (AGC) reports.
February construction put in place, valued at $885 billion, was up 1.2 percent from a month earlier and up 7.9 percent from a year earlier, with single-family construction leading the way.
The AGC report contains many encouraging tidbits, but association officials also noted that these gains are likely to be short lived as federal infrastructure dollars continue to free fall. The association noted that federal investment in construction is down 10 percent from a year ago.
“The nation has been under-investing in infrastructure for years,” Stephen Sandherr, AGC’s CEO, said in a press release. “With funding set through September, it is time for Washington to work on finding adequate funding in the next budget.”
I couldn’t agree more. States such as Michigan and Virginia are finding creative ways to channel more dollars toward infrastructure investment. It’s time for the federal government to do the same.